FedEx Corporation (FDX)
Liquidity ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.36 | 1.31 | 1.34 | 1.37 | 1.37 | 1.32 | 1.30 | 1.42 | 1.43 | 1.39 | 1.49 | 1.51 | 1.51 | 1.60 | 1.76 | 1.69 | 1.58 | 1.21 | 1.25 | 1.31 |
| Quick ratio | 1.24 | 1.17 | 1.22 | 1.25 | 1.25 | 1.19 | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 3.17 | 3.12 | 3.37 | 1.56 | 1.45 | 1.07 | 1.11 | 1.18 |
| Cash ratio | 0.49 | 0.42 | 0.47 | 0.51 | 0.50 | 0.40 | 0.33 | 0.50 | 0.48 | 0.43 | 0.49 | 0.53 | 2.29 | 2.27 | 2.42 | 0.62 | 0.47 | 0.17 | 0.19 | 0.24 |
The liquidity ratios of FedEx Corporation show consistent levels of liquidity over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating that FedEx has been able to meet its short-term financial obligations. The current ratio has ranged from 1.21 to 1.76, with the most recent figure standing at 1.36 as of May 31, 2024.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. FedEx's quick ratio has remained relatively stable, ranging from 1.07 to 3.37 over the period analyzed. As of May 31, 2024, the quick ratio was 1.24, indicating that the company has a sufficient level of highly liquid assets to cover its immediate liabilities.
The cash ratio, which is the most conservative liquidity ratio, focuses solely on cash and cash equivalents compared to current liabilities. FedEx's cash ratio has fluctuated between 0.17 and 2.42, with the latest figure being 0.49 as of May 31, 2024. This indicates that the company may have a lower proportion of cash on hand compared to its current liabilities, but still has some cash reserves to cover short-term obligations.
Overall, based on the liquidity ratios, FedEx Corporation appears to have maintained a solid position in terms of its ability to meet short-term financial commitments throughout the periods analyzed.
See also:
FedEx Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 18.28 | 2.71 | 3.20 | 3.76 | 2.93 | 14.03 | 17.27 | 13.06 | 17.17 | 13.45 | 15.98 | 15.27 | 19.58 | 5.76 | 9.09 | 11.31 | 14.81 | 11.44 | 15.92 | 17.74 |
The cash conversion cycle of FedEx Corporation has shown fluctuations over the periods provided. The company's cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The cash conversion cycle has ranged from a low of 2.71 days to a high of 19.58 days over the periods indicated. Generally, a lower cash conversion cycle indicates that the company is able to quickly convert its investments into cash, which is a positive sign of efficient operations.
It's worth noting that periods with higher cash conversion cycles may indicate inefficiencies in managing inventory, accounts receivable, or accounts payable. These inefficiencies can tie up the company's cash flow and may impact its overall financial health and liquidity.
Overall, monitoring the cash conversion cycle can provide insights into how efficiently FedEx Corporation is managing its working capital and converting its resources into cash flow, which is crucial for sustaining operations and achieving financial stability. Tracking trends in the cash conversion cycle over time can help identify areas for improvement and optimize the company's financial performance.